9

THE SIKKIM GOVERNMENT SERVANTS' (CONTRIBUTORY PENSION) RULES, 2006

[Finance Revenue & Expenditure Department, Government of Sikkim Notification No. 70/Pen/O5 dated /8^th May 2006 published in Sikkim Government (Extraordinary) Gazette No.140 dated 24^th May 2006.]

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In exercise of the powers conferred by the proviso to Article 309 of the Constitution of India, the Governor of Sikkim hereby, makes the following rules, namely,-  

1.         Short title and commencement.-

(1)        These rules may be called the Sikkim Government Servants (Contributory Pension) Rules, 2006.

(2) They shall be deemed to have come into force on the 1^st day of April 2006.

2.         Application.- Save as otherwise provided in these rules, these rules shall apply to Government servants appointed on or after 01.04.2006 to posts in connection with the affairs of the State of Sikkim which are borne on new contributory pensionable establishment but shall not apply to -

(1)  Persons in casual, daily rated and work-charged employment;

(2)  Persons paid from contingencies;

(3)  Members of All India Services;

(4)  Persons employed on contract except when provided otherwise;

(5)  Persons whose terms and conditions of service are regulated by or under1he provisions of the Constitution or any other law for the time being in force :,

3.         Definitions.- In these rules, unless the context otherwise requires,-

(a)  “All India Services” means the Service known as the Indian Administrative Service or the Indian Police Service or any Service specified in Section 2A of the All India Service Act, 1951; 

(b) “Persons employed on contract” means the persons governed by the terms and conditions of contract appointment prescribed under the Sikkim government establishment rules, 11974;

(c) “contributory pension scheme” means the mandatory contribution of 10% of

 basic pay, Dearness pay and dearness allowance from the salary of the employee and the matching contribution of the same amount from the state government;

(d) “Calendar year” means the year beginning on the first day of January and ending on the 31^st of December of' that year;

(e) “Director” means the Director, Pension, Group insurance and provident fund;

(f) “Financial year” means the year beginning on the 1^st day of April and ending on the 31^st day of march of that year;

(g) “Ledger accounts” means the book of accounts for maintaining the accounts of individual government servant who are members of the contributory pension scheme.

(h) “Public demand account” means the revenue head under which deposits of the accrued fund shall be credited;

(i) “ Superannuation” means retirement on attaining the age of 58 (fifty eight) year:

(f) “Work-charged” means those appointments made specifically pertaining to a particular work and expenditure thereof changed to the work contingencies.

4.         Compulsory subscription to pension fund.-

            (1)  it would be mandatory for all new government employees who are recruited who are recruited on or after 01.04.2006 to become member of the scheme. Each employee will pay a monthly contribution of 10% of their basic pay, dearness pay and dearness allowance from his salary to the contributory pension scheme.

(2) Matching contribution will be made the state government for each employee.

(3) The contribution towards contributory pension scheme shall be recovered from the salary of the employee every month.

            (4) Director, Pension Group insurance and Provident Fund (herein after referred to as the: P.G.I.P.F) will maintain the accounts of the contribution as in the case of General Provident Fund.

(5) The contribution would be deposited in an non- withdrawable pension account. As an interim measure, the amount of contribution towards the pension account shall be retained in an interest bearing public deposit account. Interest rates shall be paid as per the rates applicable to interest bearing public deposit accounts. Final arrangement will be made as per provision of rule 12 of these rules.

5.         Exit from the scheme-. A government servant can exit from the scheme on attaining the age of superannuation, i.e. after the age of 58 (fifty eight) years. At exit, it would be mandatory for him to invest 40% pension wealth towards purchasing an annuity from regulated life insurance company, which will provide for pension for lifetime of the employee and his family.

6.         Particulars of the employee and nomination.- immediately on joining the government service, the government servant will be required to provide particulars such as his name, designation, scale of pay, date of birth, nominee for the fund, relationship of the nominee etc. in the prescribed from

(Annexure I). The head of department concerned will be responsible for obtaining this information from all government servants covered under the new pension scheme. Information for all those who have joined service during the month shall be submitted by the head of department concerned in the prescribed format (annexure II) to the office of director, PGIPF by the 7^th of the following month.

7.         Allotment of Account Number.- On receipt of Annexure II from the Head of  Office, the office of the PGIPF will allot unique 11 digit Permanent Account Number (Hereinafter referred to as PPAN) to each employee appointed in the sate government on or after 1.4.2006. The first four digit of this number will indicate the calendar year of joining Government service by the employee, the next two digit would represent the Departmental code and the last five digits will be running serial number of the individual Government servant allotted by the office of the PGIPF. The format of PPAN is presented as under,- first four digit of this number will indicate the calendar year of joining government service by the employee, the next two digit would represent the departmental code and the last five digits will be running serial number of the individual government servant allotted by the office of the PGIPF. The forget of PPAN is presented as under .-

8.         Recovery of the deposit.-

(1)  The Head of Department shall prepare separate pay bill register in respect of the Government servants joining Government service on or after 01.04.2006 and attach a schedule of Government servant’s contribution in prescribed form (Annexure III).

(2) Along with the salary bill for the Government servants who join service on or after 01.04.2006, the Head of the Department shall also prepare a separate bill for drawal of matching contribution to be paid by the Government for credit to respective pension account.

(3) The bill for drawal of matching contribution should also be supported by schedules of recovery in the prescribed form (Annexure IV).

9.         Maintenance of account and preparation of database.-

(1) On receipt of the salary bill in respect of Government servant joining service on or after 01.04.2006, the Pay and Accounts Office (herein after referred to as the PAO) shall exercise the usual check and pass the bill for payment. The schedules relating to pension contribution will be detached from the bills and then be furnished to the office of PGIPF for posting the credit of contribution in the detail ledger account of the individual employee.

(2) The office of the PGIPF on receipt of schedules from the PO will update its database and generate exception report for missing credits, mismatches etc. which will be sent back to Head of Department concerned for further action.

(3) The district PAO shall send the schedule relating to Pension Contribution every month by 15^th of next month to the office of Director, PGIPF.

(4) At the end of each financial year, the office of Director, PGPIF shall prepare Annual Account statement for each employee showing the opening balance, details of monthly deductions and Government’s matching contributions, interest earned and the closing balance.

10.       Reconciliation with public deposit account.- At the close of each financial year, the office of PGIPF will reconcile the figures of contributions posted in the ledger accounts with the balance in the Public Deposit Account.

11.       Withdrawals.- No withdrawals will be allowed till attaining the age of superannuation, i.e. upto 58 (fifty eight) years. In the event of untimely death of an employee, payment will be made to the lawful nominees. In case an employee leaves service voluntarily, no withdrawal will be allowed till his attaining the age of 58 years provided that in case of removal/dismissal from the service of an employee, Government share shall stand withdrawn and be deposited in General Revenue head of the State. The employee may withdraw his share.

12.       Management of fund.-

(1) The State Government may appoint its own pension fund regulatory and development authority and intermediaries. A separate set of regulations will be notified for this purpose.

(2) The State Government can exercise the option to join the new contributory pension scheme of the Central Government as notified vide Extraordinary Government of India Gazette number 42 dated 29.1.2004 and as may be modified from time to time.

(3) Notwithstanding anything contained in these rules, in the event of the State Government exercising the option to join the Central Government’s contributory pension scheme, the contributions towards pension fund deposited in the interest bearing PD account of State Government will be transferred to the intermediaries registered and regulated by Pension Fund Regulatory and Development Authority constituted by the Central Government and thereafter regular contribution will also be transferred to them. The functions relating to record keeping will be assigned to the Central Record Keeping Agency, registered and regulated by the aforesaid authority. On death or retirement on superannuation or otherwise, the retirement benefits will be paid by the intermediaries, registered and regulated by the Central Pension Fund Regulatory and Development Authority as per rules specified by the Pension Fund Regulatory and Development Authority for this purpose. On this account, there will be no financial liability of the State Government. .

Note.-

1.         State Government contribution of the equal matching share to be booked by the individual department under their respective salary head till any such further arrangement.

2.         For crediting the recoveries made from the employees and their matching share of the State Government contribution towards the contributory pension scheme, the Head of Account will be “8342-0ther Deposits -117 -Defined Contributory Pension Scheme for Government

Employees.”

3.         It is proposed that the new Contributory Pension Scheme be made effective from 0 1.04.2006 as proposed. Before this date, the State Government notification to this effect is to be issued.

4.         Department code for the purpose of PPAN (Permanent Pension Account Number) will be notified after the Scheme becomes effective.

By order

(T. T. Dorjee ) IAS

Principal Secretary,

Finance, Revenue & Expenditure Department

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ANNEXURE.I

(Details to be furnished by the Government Servant)

1. Name of the Government Servant (in block letters):

2. Designation

3. Name of Department 4. Scale of pay

5. Date of birth

6. Date of joining Government service

7. Basic pay

8. Nominee for accumulation under the Pension Account

Date                                                                 Signature of the Government Servant

Received the above declaration

Date                                                                 Signature with seal

Station                                                             (Head of office)

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ANNEXURE II

Format in which monthly information is required to be sent by Head of Office to the Unit Office of Director, PGIPF Department for newly appointed employees

Name of office & address         Month & year

Commission has to be consulted wherever consultation is necessary before any order is made in any case under the Sikkim government servant’s (discipline & appeal) rules.1985

1.5       all the Secretaries heads of departments are therefore directed to take immediate action in terms of rule 7 of the Sikkim Government Servant’s (Discipline & Appeal) Rules, 1985, against any Government servant whose conduct has led to his conviction on a criminal charge

[Department of Personnel Circular No. 2488/GEN/DOP dated 2.12.200]

8.-        Suspension.-

(1) The Appointing Authority or any authority to which it. is subordinate may place a Government servant under suspension-

  (a) where a disciplinary proceeding against him is contemplated or is pending; or

(aa) where, in the opinion of the authority aforesaid, he has engaged himself in activities prejudicial to the interest of the security of the State; or

(b) where a case against him in respect of any crimil1al offence is under investigation, inquiry or trial.

     (2)   A Government servant shall be deemed to have been placed under suspension by an order of the Appointing Authority

(a) with effect from the date of his detention, if he is detained in custody, whether on a criminal charge or otherwise, for a period of forty- eight hours or more; .

(b) with effect from the date of his conviction, if in the event  of conviction for an offence he is sentenced to a term of imprisonment for forty eight hours or more and is not forthwith dismissed or removed or compulsory retired consequent to such conviction.

Explanation.-  The period 'of forty-eight hours referred to in clause (b) 01 this sub-rule shall be computed from the commencement of the imprisonment after the conviction and for this purpose, intermittent period of imprisonment, if any shall be taken into account.

(3) Where a penalty of dismissal, removal or compulsory retirement from service imposed upon a Government servant under suspension is set aside in appeal or on review under these rules and the case is remitted for further inquiry or action or with any other direction the order of his suspension shall be deemed to have continued in force on and from

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ANNEXURE IV

Format of Schedule of Government Servant's contributions towards new Contributory Pension Scheme –

(to be attached with the pay bill for drawal of Government's contribution)

Name of head of office

(Rupees ………………...............................................………..)

Date     Signature & Name of Head of Office with office seal.

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Subject: Sikkim Government's (Contributory Pension) Rules, 2006

Whereas the Sikkim Government's (Contributory Pension) Rules, 2006, has come into force with effect from 01.04.2006 vide Notification No. 70/Pen/05 dated 18/05/2006 applicable to those State Government employees appointed on or after 01/04/2006. Accordingly, for comprehensive operation of the New Pension Scheme following guidelines of the procedural working and other related details are given below,-

1.         Procedural working.-

(a) Each employee will pay a monthly contribution of 10% of Basic Pay, DP and D.A. from the salary to the Contributory Pension Scheme and matching contribution of the amount will be made by the Government.

(b) The contribution towards Contributory Pension Scheme shall be recovered from the salary of the employees every month as is done now for G.P.F.

(c) The recovery of the contribution from pay bills of the employees should be made only after obtaining the PPAN (Permanent Pension Account Number) from the office of the Director, PGIPF. .

(d) Heads of the Departments/Heads of offices shall be responsible for obtaining the PPAN for all the new employees who have joined Government Service on or after 1.4.2006. For allotment of the PPAN, Heads of Departments and Heads of Offices shall promptly apply for the PPAN by filling the prescribed proforma schedules at Annexure I and Annexure II to the office of Director, PGIPF.

(e) The D.D.Os concerned shall thereafter start deduction towards pension contribution in respect of the newly recruited employees.

(f) Separate pay bills shall be prepared for all the members contributing to the new Contributory Pension Scheme. Along with the pay bills the schedules of the recovery showing the particulars of the contributions to the Pension Scheme shall be furnished by the D.D.Os. Prescribed schedules are placed at Annexure III and IV.

(g) The recovery schedules attached to the pay bills after issue of the salary cheque shall be detached and sent over to the office of the Director, PGIPF latest by 1h of the following month by the concerned Pay & Accounts Office.

II.        Schedules and Responsibilities.-

For the present four numbers of the Schedules have been prescribed.. Schedule I and Schedule II concerns the consolidated information of the Government employee. The Head of offices shall be responsible for obtaining this information from the Government employee and forwarding the same to the office of Director, PGIPF for allotment of

PPAN.

Schedule III and Schedule IV relates to the details of the contributions. The Head of the Offices and D.D.Os shall be responsible for preparation and submission of the Schedules.

III.       Method for allotment of PPAN.-

PPAN will consist of 11 digits. The first 4 digits will indicate the year of joining service, the next 2 digits will indicate departmental code and the final 5 digits will be the running serial number.

An example of PP AN allotment for the 1^st  person who is employed in the department of AH& VS shall be

20060100001

For quick identification of PPAN, Department code as appended with this circular has been followed.

The allotment of Departmental Code. It is given in the Appended Annexure.

IV.       Instruction.-

(a) Arrears of subscription to the Contributory Pension Scheme from 1.4.2006 will be deducted from the new employees who have already joined after 1.4.2006 along with the current month subscriptions (i.e. one subscription for current month and monthwise arrears of the past.)

(b) The reasons for non-recovery from a particular employee and also reasons for variation if any in the recovery from an employee should be furnished by the D.D.Os concerned in the recovery schedules without fail.

(c) The PPAN (Permanent Pension Accounts Number) allotted by the office of the Director, PGIPF, should be entered in the ISI page of the Service Book with necessary attestation without fail.

(d) Nomination has to be filed at the time of admission and has to be revised upon marriage of the subscriber and thereafter once in 5 years. Necessary entry to the effect should be noted in the Service Book of the concerned employee.

(e) Recoveries towards contribution will start from the salary of the month following the month in which the Government servant has joined service. No recovery will be made for the month of joining. For example, for employees joining in the month of April, 2006, deduction towards the fund will start from the salary bill of May 2006.-No deduction will be made from his salary of April 2006. Similarly, deduction for those joining service in the month of May, 2006, will start from the salary bill of June, 2006 and so on.

(f) The State Government share of the contribution will be booked by the Department/Offices under the Head "2071-Pension- & other Retirement Benefits, OI-Civil, 117-Govemment Contribution for Defined Contributory Pension Scheme”.

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ANNEXURE

LIST OF GOVERNMENT DEPARTMENTS AND CODE NUMBER

ALLOTTED

[Finance, Revenue &; Expenditure Department Circular No. 166/PGIPFdated   22/7/2006.]